XTRA: News Release

FOR IMMEDIATE RELEASE           For information contact:
October 23, 1998                XTRA Corporation
                                Michael J. Soja
                                Vice President and
                                Chief Financial Officer
                                Tel: (617) 367-7810


                        PRESS RELEASE


XTRA CORPORATION UPDATES MERGER STATUS

        Boston, MA - October 23, 1998 -- XTRA Corporation ("XTRA") (NYSE: 
"XTR") announced on June 19, 1998, that it had entered into a merger agreement
for a merger of Wheels MergerCo LLC ("MergerCo"), a limited liability company
newly formed by Apollo Management IV, L.P. ("Apollo") and Interpool, Inc.
(NYSE: IPX) with and into XTRA. 

        At the time of execution of the agreement, MergerCo received a
commitment from Chase Securities Inc. ("CSI"), The Chase Manhattan Bank
("Chase") and Credit Suisse First Boston.  XTRA has been advised by CSI and
Chase that they have informed MergerCo that, in view of current market
conditions, they would exercise their right under the commitment letter to
change the pricing, terms and structure of the financing.  In addition,
Apollo, on behalf of MergerCo, recently indicated to XTRA that, in view of
current market conditions, it does not believe that MergerCo would be able to
obtain the financing necessary to consummate the Merger. The commitment letter
will terminate in accordance with its terms on November 30, 1998 if no amounts
have been funded thereunder. The merger agreement provides that if the
transacation is not consummated on or prior to November 30, 1998, either
MergerCo or XTRA will be able to terminate the transaction, to the extent that
the terminating party is not in breach of the merger agreement.  
        
        In light of current circumstances, including, without limitation, the
notice from Apollo and the position expressed by CSI and Chase, XTRA can give
no assurances that the merger will be consummated. XTRA still intends to hold a
special stockholders meeting and seek stockholder approval of the merger so
that it will have taken all steps required of XTRA to close the transaction
prior to November 30, 1998.

        XTRA's President and Chief Executive Officer, Lewis Rubin, emphasized
that "XTRA's Board and Management remain committed to their stated strategy
since 1990 of maximizing shareholder value" and noted "the overall business
environment and demand for freight transportation remain favorable despite some
slowdown in general economic activity.  We expect to report strong fourth
quarter results and record performance for the year ended September 30, 1998."
 

        Capital spending for fiscal 1998 was approximately $200 million,
modestly lower than the $249 million spent in 1997.  XTRA also has committed
capital spending for fiscal year 1999 amounting to approximately $110 million
reflecting expected strong leasing demand for over-the-road trailers.  Capital
spending for fiscal 1999 may be increased depending on business conditions.

        XTRA is a leading lessor, primarily on an operating basis, of freight
transportation equipment, including over-the-road trailers, marine containers,
intermodal trailers, chassis, and domestic containers.  XTRA leases
over-the-road and intermodal equipment throughout North America, predominantly
within the United States, to contract and common carriers, railroads, and
private fleet owners.  In addition, XTRA leases marine containers worldwide to
steamship lines.

        This press release contains, in addition to historical information,
        certain forward-looking statements that involve risks and
        uncertainties.  These include statements relating to such factors as
        expected demand and utilization, business conditions, and capital
        expenditures.  Such statements are based on management's current
        expectations and are subject to a number of risks and uncertainties
        that could cause actual results to differ materially from those
        described in the forward-looking statements.  Factors that may cause
        such a difference include, but are not limited to, the variability of
        the Company's revenues and its fixed operating expenses; the impact of
        the North American and International economics on revenues, lease rates
        and utilization; and fluctuations in interest rates and foreign
        exchange rates.  These risks are discussed under the caption
        "Cautionary Statements for Purposes of the 'Safe Harbor' Provisions of
        the Private Securities Litigation Reform Act of 1995" in the Company's
        Annual Report on Form 10-K for the fiscal year ended September 30, 1997
        on file with the SEC.



Ends.